Title
Interest Rate to Credit Member Accounts for Fiscal Year 2026/2027
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FileID
File ID: 2026-01004
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution establishing the interest rate to be credited to member accounts for Fiscal Year 2026/2027 in the amount of 7.50%.
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Contact
Contact: Patrick Zalasky, Senior Investment Officer, (916) 808-5832, pzalasky@cityofsacramento.org, City Treasurer’s Office
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Presenter
Presenter: Patrick Zalasky, Senior Investment Officer, (916) 808-5832, pzalasky@cityofsacramento.org, City Treasurer’s Office
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Attachments
Attachments:
1-Description/Analysis
2-AIFM Staff Report
3-AIFM FY 2026/2027 Interest Rate Credit Resolution
4-Exhibit A
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Description/Analysis
IssueDetail
Issue Detail: The Board annually determines and adopts an interest rate to be used to calculate credits to Sacramento City Employees’ Retirement System (the “System”) member accounts.
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PolicyConsiderations
Policy Considerations: Charter Section 387 requires that the Board determine an interest rate for purposes of crediting interest to member accounts during the next fiscal year. The rate adopted must bear a reasonable relationship to the realized, actual rate of return on investments.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: None.
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Sustainability
Sustainability: None.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: In fulfillment of its responsibility under Charter Section 387, the Board established a methodology to calculate the required interest rate that bears a reasonable relationship to the actual rate of return on the investment of the System’s assets. The interest rate recommended for adoption by the Board is based upon this methodology.
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FinancialConsiderations
Financial Considerations: The Board’s approved methodology for determining the required interest rate is to establish the three-year moving average net rate of return of the invested assets. This amount is then reduced by 20 basis points, and the difference is rounded down to the next quarter of a percent. This methodology is set forth in Recital B of the accompanying Board resolution as the basis for the Board’s interest rate determination. Pursuant to the foregoing methodology, the recommended interest rate is 7.50%.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not Applicable.
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